The UK's November 2025 budget announcement makes apprenticeship training for under 25s in SMEs fully government‑funded, which is a major opportunity for employers and learners in building services and it aligns closely with Logic4training’s growing gas and smart metering apprenticeship offer. This change, combined with a new “youth guarantee" for 18-21 year olds, means it has never been easier or cheaper for small and medium-sized businesses to bring new talent into the trades.
What the 2025 budget announcement actually changed
The Chancellor has announced that SME co‑investment contributions (the 5% employers previously paid towards training) will be removed for apprentices under 25, making apprenticeship training costs 100% government‑funded for eligible learners in small and medium‑sized businesses. This builds on earlier reforms that removed co‑investment for younger apprentices and now extends this support up to age 24, subject to implementation details in the coming financial years.
Alongside this, the government has confirmed a wider skills package, including a redesigned levy system from 2026 and an £820m “youth guarantee” to give every 18-21 year old access to an apprenticeship, college place or tailored job support. Together, these measures are designed to reduce youth unemployment and help sectors with acute skills gaps, including construction, gas, electrical and renewables.
Why this matters for SMEs in the building services sector
For SME employers, the headline impact is simple: if you take on an apprentice under 25, the government will fund the full cost of their off‑the‑job training (up to the relevant funding band), rather than asking you to contribute 5%. In practice, this removes a key financial barrier for smaller contractors and local firms who want to grow but are cautious about long‑term training costs.
SMEs still pay the apprentice’s wages and must release them for training, but they no longer have to factor in training fees when working out whether they can afford to recruit. For trades like gas engineering, smart metering, plumbing and renewables, where margins can be tight, and work is often project‑based, this change could be the difference between putting apprenticeship plans on hold and going ahead with a structured talent pipeline.
National Insurance savings for employers
On top of the funding changes, there is an existing National Insurance (NI) exemption that makes apprenticeships even more cost‑effective for employers. If an apprentice is under 25, on an approved apprenticeship scheme and earns below the Upper Secondary Threshold of £50,270 per year (£967 per week for the 2024/25 tax year), the employer does not have to pay Class 1 employer National Insurance contributions on their earnings.
This relief only applies to the employer’s NI bill, apprentices still pay NI in the normal way based on their earnings, but for businesses it can represent a significant annual saving, especially where salaries are close to the threshold. The exemption covers both new starters and existing staff who are upskilling through an approved apprenticeship, which means SMEs can use apprenticeships to develop current team members as well as bring in new recruits while keeping payroll costs under control.
How it links to Logic4training apprenticeships
Logic4training has been delivering technical building services training for over 20 years, with centres in Northolt, Luton, Basildon and Sittingbourne covering gas, electrical, plumbing, smart metering and renewables. In 2024, we launched our dedicated apprenticeship programmes in gas engineering and dual fuel smart metering, using small classes, ex‑industry trainers and year‑round intakes rather than rigid academic terms.
With the recent budget announcements making under‑25 SME apprentices fully funded, employers who partner with Logic4training for apprenticeships can now access this expertise without the usual 5% training contribution. With the NI exemption for qualifying under 25 apprentices also available, the overall cost of hiring or upskilling through an apprenticeship becomes even more attractive for SMEs. For details on current routes, employers and learners can explore the dedicated Logic4training Apprenticeships website.
Apprenticeships covered: gas, smart metering and beyond
Logic4training is initially focusing its apprenticeship offer on two core standards that align with long‑term skills needs and decarbonisation policy.
- Level 3 Gas Engineering Installer: For those installing, commissioning and maintaining gas appliances in domestic and some non‑domestic settings.
- Level 2 Dual Fuel Smart Meter Installer: For installers fitting and maintaining smart gas and electricity meters in homes and small businesses.
Both pathways sit within a wider ecosystem of training that includes gas ACS qualifications, new entrant gas programmes, and renewables courses, providing apprentices and employers with clear progression routes into areas such as low-temperature heating, air-source heat pumps, or commercial heating and/or catering.
Funding rules before and after the announcement
Before this announcement, most SMEs either paid a 5% co‑investment towards apprenticeship training or benefited from specific reliefs if the apprentice was under 21 or met certain criteria. Large employers funded apprenticeships through the Apprenticeship Levy, with unspent levy funds sometimes transferred to smaller firms via levy transfers.
From April 2024, the government had already committed to fully funding apprenticeships for 16-21 year olds in non‑levy firms, with extended support for some 22-24 year olds with additional needs. The recent budget announcement goes further by confirming that training for all under‑25 apprentices in SMEs will be fully government‑funded, with £725m set aside specifically to support this expansion.
What the Youth Guarantee means for potential apprentices
The new Youth Guarantee provides an offer for every 18-21 year old a place in college, an apprenticeship or tailored job support, plus paid work after 18 months on Universal Credit for those still looking for a role. For young people interested in trades, this makes the apprenticeship route more visible and more secure, especially when combined with free training for SME roles.
For those who may have left school or college without a clear plan, the Youth Guarantee, backed by £820m over three years, is designed to reduce the number of young people not in education, employment or training (NEET), which currently affects close to a million 16-24 year olds. Apprenticeships in gas, smart metering and renewables provide a practical route into stable, skilled work in sectors with long-term demand.
Benefits for SMEs partnering with Logic4training
For SMEs in building services, partnering with Logic4training under the new funding regime offers several practical advantages.
- No 5% training contribution for under‑25 apprentices, significantly reducing the cost of taking on new staff.
- Employer NI exemption for qualifying apprentices under 25, further cutting the cost of employment for both new hires and existing staff who are upskilling, as long as they are on an approved apprenticeship and earn below the upper secondary threshold.
- Flexible, year‑round apprenticeship start dates rather than fixed academic intakes, making it easier to align training with workload and cashflow.
- Small class sizes (typically 8-10 learners) to maximise individual support and ensure apprentices can apply learning on site more quickly.
- A “complete solution” approach, with English and maths delivered in‑house where needed and clear routes into upskilling courses as apprentices progress.
Logic4training also provides guidance on apprenticeship funding rules, levy use and potential levy transfers, with resources like its guide to apprenticeship funding rules and blogs explaining the benefits of apprenticeships for small employers.
What this means for learners considering a trade
For a young person aged 18-24 who wants to become a gas engineer, smart meter installer or future renewables specialist, Budget 2025 makes the apprenticeship pathway more attractive. Training with an SME employer will now be free to the business, increasing the number of firms willing to offer positions and reducing competition for places in some regions.
Logic4training’s apprenticeship routes are designed for those who want to “earn while they learn”, combining on‑site experience with concentrated training blocks at Logic4training centres. Once qualified, apprentices can explore further courses in areas like air source heat pumps, low temperature heating, and advanced gas or electrical qualifications, building a long‑term career in a changing energy landscape.
How employers can prepare
Although some implementation details will firm up around the 2026 financial year, SMEs can begin planning to take advantage of the extended free training and the available NI savings for under 25 apprentices.
- Review workforce and skills gaps: Identify where gas, smart metering or renewables skills will be needed over the next 2-5 years.
- Decide if an SME apprenticeship model fits: Smaller businesses that cannot commit to a full in‑house training team can use Logic4training as an external specialist provider.
- Register interest with Logic4training: Use the Logic4training Apprenticeships site to register interest in gas and smart metering apprenticeships.
- Clarify funding eligibility: Confirm whether your business counts as an SME, check that prospective apprentices are under 25 at the start of training and understand how the employer NI exemption works, including the £50,270 per year (£967 per week) upper secondary threshold.
Employers who act early will be better placed to secure places on popular standards and align start dates with their project pipeline.
Summary
The UK’s November 2025 budget announcement makes apprenticeship training for under 25s in SMEs fully government‑funded, removing the 5% employer contribution and opening the door for more small and medium-sized businesses to take on apprentices in trades like gas, smart metering, plumbing and renewables. When combined with the existing employer NI exemption for qualifying apprentices under 25, the overall cost of hiring or upskilling through apprenticeships becomes even lower, supporting both growth and productivity. It sits alongside a new Youth Guarantee, which promises every 18- 21 year old a place in education, an apprenticeship or tailored job support, aiming to cut youth unemployment and tackle skills gaps across construction and building services. For Logic4training, this shift directly supports its established training centres and growing apprenticeship offer in gas engineering and dual fuel smart metering, giving employers access to experienced trainers, small class sizes and clear progression routes into low‑carbon technologies, without extra training fees for eligible under 25s.
Logic4training Apprenticeships
FAQs
Is apprenticeship training now completely free for SMEs?
For apprentices under 25 in small and medium‑sized enterprises, the government has announced that training costs will be fully funded, removing the usual 5% employer contribution, subject to funding band limits and final implementation details. SMEs may also benefit from separate employer National Insurance relief for eligible under‑25 apprentices, which can further reduce overall employment costs.
Which Logic4training apprenticeships are affected by this change?
Logic4training’s initial apprenticeship offer includes the Level 3 Gas Engineering Installer and Level 2 Dual Fuel Smart Meter Installer standards, and SME employers taking on under 25 apprentices on these programmes can benefit from full training funding. As the policy beds in, Logic4training will review demand and may expand its apprenticeship offer to cover additional building services and low‑carbon routes.
Do employers still have to pay apprentice wages?
Yes, SMEs must still employ the apprentice, pay at least the apprenticeship minimum wage or relevant national minimum/living wage, and give them time off for off‑the‑job training. Employer National Insurance may be reduced or not payable for eligible apprentices under 25, but apprentices themselves still pay NI based on their earnings.
Can apprentices progress into renewables and green energy with Logic4training?
Yes, once core skills are in place, apprentices can move into specialist areas via Logic4training’s renewables courses, including air source heat pumps, low temperature heating and other low‑carbon technologies. This allows learners to build a long‑term career that supports the UK’s transition away from fossil fuel heating.
How can SMEs or potential apprentices get started with Logic4training?
Employers and learners can visit Logic4training Apprenticeships to learn more, register interest and speak to the team about funding, NI relief, start dates and programme content. The team can also signpost relevant renewables and upskilling courses to help plan longer‑term workforce development.
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